Shante is employed by a local pharmaceutical company where she earned $48,000 in 2017.During the year,she also had self-employment income of $18,000.Her self-employment tax rounded to the nearest dollar is:

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The self-employment tax rate is 15.3%. The first $127,200 of combined wages, tips, and net earnings is subject to the Social Security portion of the self-employment tax. Shante's total income is $66,000, which is below this threshold. Therefore, her self-employment tax is 15.3% of $18,000, which is $2,754. However, only the employer's portion (7.65%) is deductible, resulting in a net tax of $2,543.

Shante Is Employed by a Local Pharmaceutical Company Where She